Teaching Smart Savings At All Stages

We live in a world of instant gratification.
We digest information, pay bills, shop and share photos all at the click of a button. At times, it can be hard to teach our children the value of delayed gratification. Learning to save for a rainy day is a vital, yet simple, lesson our children need to learn.

According to the American Bankers Association Education Foundation, kids who save reap benefits in a number of ways:

Kids who save are more likely to go to college.

Teaching kids to save teaches self control.

Children who save have a greater sense of hope for the future.

Savers are more financially literate.

Children are capable of learning about saving at all stages of life. Here are a few suggestions from Lewiston State Bank and the American Bankers Association to help your children learn about saving.

Preschool – 2nd Grade

Ask relatives to contribute to a college fund instead of
giving toys.

Start saving early by opening a college savings account or
exploring 529 college savings plan options.

3rd – 5th Grade

Take your kids to the bank to gain an understanding of
depositing money and making basic transactions.

Use weekly or monthly allowances to teach kids about
saving and spending money.

Create a saving jar, spending jar, sharing jar and investing jar
to show the different ways that money can be organized
and used.

6th – 8th Grade

Help your kids find simple jobs, such as babysitting or
car washing, to start earning and saving money.

Include your children when planning finances that
involve them and the family so they can learn how to
make sound financial decisions.

Take your kids to the grocery store. Have them help
make decisions about what to buy based on your
budget.

9th – 10th Grade

When starting a first job, help your child create a savings
and spending plan as well as a budget so they learn smart
strategies for using their money in the future.

Research scholarships and other college funding resources
now to cover the rising costs of tuition.

There are a lot of expenses when your child goes off
to school. Set a goal and start saving together for
housing, travel and other costs.

11th – 12th Grade

Talk to your teen about credit and avoiding identity theft.

They should understand the implications of accumulating
debt and aim to pay off their monthly balance in full.

Help your teen learn about scholarships, investments and
funding plans now so they’re better prepared to make deci-
sions on what college, trade school or university to attend.

Ask relatives and friends to contribute to a savings fund as a
graduation gift.

Saving money for the future is a fundamental principle that children need to learn. With coaching and encouragement from their parents, children can successfully navigate the financial future ahead of them.